Trade

Traders use this section of the platform to exchange or trade cryptocurrencies. Traders can use strategies for profitable cryptocurrency trading by using fundamental or technical analysis.

For trading cryptocurrencies on the PancakeSwap protocol, there are the following features to choose from:

• Swap

Used for classic cryptocurrency swaps that are executed immediately. Liquidity is provided from the liquidity pools on the PancakeSwap protocol. This strategy can be used by traders if they want to instantly swap their cryptocurrencies in a decentralized environment without the need for KYC. PancakeSwap has sufficient liquidity on high market cap assets, so even swaps in the tens of thousands are unaffected by high slippage.

• Limit

Using limit orders, traders can buy or sell assets at a set (limit) order to reach a better price. By entering a limit order, an exchange of an input asset for an output asset takes place when the price of the output asset exceeds the price of the input asset.

The limit strategy is suitable for traders who have determined by analysis at what prices it is acceptable for them to buy or sell their chosen asset. By setting a limit order, they can then acquire it at their chosen price. The algorithms execute the purchase for them once this price is reached.

‍

• Perpetual trading

By clicking on ‘Perpetual,’ you will be redirected to the perpetual trading platform on PancakeSwap, which enables perpetual trading with an interface that is very similar to the one on centralized exchanges (CEXs).

Traders can use strategies with market orders or limit orders. Depending on their risk / rewards, they can choose whether their strategies fit multiple trades in seconds to minutes (scalp trading), short-term (in a few hours), or long-term, which lasts a few days / weeks. The platform interface offers leverage settings, cross / isolated margin mode, and all limit orders - just like on a CEX. Keep in mind that leveraged trading is high risk and if you choose to do it before you have enough experience, trade with small capital, and always protect your capital with a stop-loss order.

• Earn

The safest strategies for providing liquidity are those where there is as little impermanent loss as possible; i.e., the assets should be correlated by price as much as possible, but at the same time, they must generate sufficient income from the swap fees on the platform.

Strategies for providing liquidity can be divided into passive and active. Passive liquidity providers are token holders who invest passively to accumulate profits from trading fees, choose the most correlated pairs possible, and generally do not actively monitor their positions and impermanent losses. Active liquidity providers focus on monitoring the current market situation, actively monitor their positions, and choose even more speculative pools, but at the same time try to avoid high impermanent losses.

The crypto correlations tool will show us how individual assets correlate with each other in price, which will let us know which cryptocurrencies to choose for the LP. However, many of the low market cap tokens that can be put into LPs on PancakeSwap are unlikely to be found here.

Crypto correlations matrix.

• Farms

On PancakeSwap, after you have created an LP, you can put your LP token into farms for additional profits. In this case, you start getting additional rewards from farms in $CAKE, but at the same time you are still a liquidity provider, so you also get rewards in the form of fees from swaps executed on PancakeSwap.

• Pool

In Syrup Pools, the platform interface offers $CAKE staking, for which you will earn rewards in $CAKE or other reward tokens currently offered on PancakeSwap. In the case of the Syrup pool - "Stake $CAKE Earn $CAKE" - there is a choice of flexible staking or locked staking. Flexible staking can serve as a short-term strategy with lower APY, where the investor can withdraw their staked $CAKE at any time, but if it is withdrawn within 72 hours of staking, there is an unstake fee of 0.1 %. On the other hand, if the investor chooses locked staking, they can choose for how long they want to lock their $CAKE. The longer the time, the bigger the rewards. With this strategy, however, the investor will only get their tokens back after the locking period expires.

• Win

Here, you can find various competitions in which you can take part, with the possibility of winning various prizes. There are no specific strategies. In short, either you get lucky and win, or you don't. Each competition has different conditions for participation, so make sure you study them thoroughly before you enter.

• NFT

NFTs are a very risky market. Just like you can trade cryptocurrencies, you can also trade NFTs - so-called speculation on the upside of the NFT price. If you are a beginner and are interested in NFTs, it is advisable to first gain enough knowledge before entering this market. To be able to trade NFTs and be profitable at the same time, you need to master the many skills that this market requires, and spend hours on the Discord of the authors of the particular NFT collection you want to trade.

• IFO

In Initial Farm Offering (IFO), you can acquire tokens in what is known as a presale. If users meet the required conditions, they can participate in a public sale or private sale for tokens of new projects that launch on the BNB Smart Chain. Several strategies can be used here, in the form of speculating on the price and selling out directly after receiving the tokens, trusting in the long-term fundamentals of the new project, etc. However, in many cases, these projects lack significant long-term sustainability and the price of their tokens quickly falls below the pre-sale price. Before participating in an IFO, I recommend conducting a thorough analysis of the project whose tokens are on presale offer.

‍

Similar protocols that could also be considered competitors are Uniswap v3, Curve, SushiSwap, and Balancer. All of these protocols have been doing very well for a long time and hold the top positions in TVL. They provide a secure and decentralized interface for their users in which they can trade and interest their cryptocurrencies without the need for KYC. They also have quality developers and programmers who are always pushing themselves to come up with new features, which keeps a healthy rivalry that constantly helps them to move forward and bring new features to the world of decentralized finance. I've had positive experiences with each of these protocols and if you use them wisely, you certainly will too.

We've described some of the strategies we can use on PancakeSwap, some of which we have already tried. On PancakeSwap, everyone will find what best fits their particular strategy and risk profile. Traders can use classic swaps, limit orders, perpetual trading, or even the NFT market. On the other hand, more passive investors can choose to provide liquidity or stake cryptocurrencies. The more competitive among us can also participate in competitions. If you are inspired by any of the above-mentioned strategies, familiarize yourself thoroughly first, and always start with a small amount of capital. For a detailed analysis and how PancakeSwap works, please read the article, PancakeSwap- Protocol.